7 tips to anticipate your investment in a second home in Paris

To be able to stay in good conditions when you are on a business trip, or even simply in order to enjoy Paris whenever you want and without having to book a hotel, you can offer yourself a base in the capital. This investment in a second home costs you money, but it then allows you to save valuable time in preparing for your trips. It is also a project that you can make profitable by betting on the periodic rental of the apartment, when you do not need to stay here. In order to start this purchase in the best conditions, discover some essential tips, grouped together for you for a rental investment in your second home.

1- Have a solid case

When you want to become the owner of your main residence, you have access to assistance such as the zero interest loan (PTZ) or the Action Logement loan, under certain conditions. But these devices are only valid for homes that you occupy all year round, you cannot claim them in order to acquire a Parisian pied-a-terre which is only a second home.

Very concretely, you must keep in mind that a second home costs money: you will have to furnish the apartment, and provide all the equipment to use it in optimal conditions, especially if you want to rent it during certain periods. On average, statistics allow us to know that the maintenance of a second home represents between 1 and 3% of the purchase price, depending on the case.

In Paris, the real estate market is extremely tense: many people are looking to buy, and the offers are not enough to meet all requests. If you want a second home here, you must be able to demonstrate the strength of your application, otherwise your application will not be able to reach the top of the pile. Make sure you have a good contribution and a minimum borrowing capacity, and argue around your strengths to seduce sellers.

At HOME SELECT, we help all our customers to realize their real estate projects in the best conditions. We are perfectly used to dealing with the requirements of the Parisian real estate market; we will help you strengthen your candidacy with owners, and we can even guide you in all negotiations.

2- Anticipate tax expenses

As soon as you add a new property to your real estate portfolio, you should keep in mind that this will change your taxation. Plan yourself well, in order to know concretely what this Parisian apartment will cost you each year.

For example, when you make a gain on resale, note that it is subject to income tax as well as social security contributions. The capital gain on a second home is taxed at 19%, but you can benefit from a 6% linear reduction as soon as you have accumulated at least 6 years of ownership. This tax must be added to social security contributions, which represent a rate of just over 17%.

Of course, even if you don't sell right away, this Parisian pied-à-terre will cost you money, since you will have to pay the associated local taxes. In concrete terms, property tax is still required on second homes, except for the elderly, disabled or declaring low incomes.

At the same time, note that the housing tax exemption — which has been in force for several years (it was an election promise by Emmanuel Macron) — does not concern second homes. Also, even if you do not pay this housing tax for your main residence, you will most certainly have to pay it for your Parisian accommodation, unless your professional activity requires you to own a second home, or if you live in a second home before being placed in a retirement home or a nursing home.

At HOME SELECT, we know all the specificities of taxing a second home in Paris, and we are used to making very accurate financial projections for all our customers. We have all the necessary know-how to allow you to buy with full knowledge of the facts, without simply taking into account the expenses inherent in the purchase.

3- Provide for the rental of the property

On average, you must be able to accumulate at least 6 weeks of rental each year to cover the costs of a second home. Of course, this minimum may be higher if you have invested in a luxury apartment with significant monthly credit payments, if you have significant condominium fees or if you want to carry out rehabilitation work.

If your apartment is located in a building under the condominium regime in Paris, make sure that the condominium regulations allow the rental of the unit. Then, go to your Town Hall to declare your furnished tourist rental. In a city like Paris, any change in the use of a property must be authorized by the municipality, do not forget to ask for your authorization to respect the rules.

If you do not declare the rental of your Parisian pied-a-terre, you risk a fine of €450, and it can go up to €50,000 if this rental was subject to a change of use.

At HOME SELECT, we know the sales market as well as the rental market perfectly. In Paris, we can give you all the advice you need to rent your apartment without forgetting your obligations, and we are even in a position to guide you on best practices to make this operation as profitable as possible.

4- Know that a second home does not necessarily enrich you

When you become the owner of your main residence, you save rent every month. But a second home, on the other hand, is primarily a source of additional expenses — it is not a really profitable investment, in most cases.

It is important to keep in mind that buying a Parisian pied-a-terre costs money, and involves additional regular expenses later on. Of course, even if a second home is not an attractive investment strictly speaking, it is still an investment that many people prefer for real reasons.

First of all, having a second home means opening the door to good times spent with your family in a city that you like, but also saving time when you organize your professional trips. In the long term, this home can be bequeathed to your children and contribute to increasing their wealth.

Then, this second home, even if it costs you money, is still a property that you own and that you can resell whenever you want if you need capital.

At HOME SELECT, we don't embellish real estate investments, and we know how to tell our customers when their projects are going to cost money. Our aim is not to encourage or discourage you, but to help you have all the information that could impact your decision. Our only objective is to act in your best interests, don't forget that!

5- Be reactive and manage negotiations

In Paris, as soon as an apartment is put up for sale, owners very quickly receive several dozen (or even more) applications to buy. So if you want to keep their attention, you need to be able to show that your profile is stable and that your project has been well thought out.

Sellers may be attracted to people who want to buy their main residence, because it is an investment that is generally more invested in than for a pied-a-terre. In order to increase your chances of becoming an owner, take the time to describe your situation and your goals, without forgetting to present your profile in order to reassure your interlocutors as much as possible.

Managing negotiations for the purchase of a second home in Paris can be complex if you are not lucky enough to already be there. Again, your file may come second only to those of individuals already present in Paris and available for face-to-face meetings. To ensure that your interests are maintained, seek the help of an apartment hunter who can act on your behalf in the field.

At HOME SELECT, we are used to working for customers who are geographically remote. Whether you live in the Province or abroad, we remain at your disposal to go and visit for you, negotiate the apartment in your interests and replace us for you for all the administrative procedures necessary for the purchase.

6- Choose the location for yourself and for others

Your second home in Paris will probably be rented for several weeks or months throughout the year, when you are not living there, to amortize this acquisition as much as possible. You should think about the attractiveness of your apartment on this market before buying, as this will help you make the most financially attractive investment.

In Paris, you know that you will very easily find candidates to rent your apartment, because it is a city where demand is always very high, both from students and from tourists on vacation. However, some neighborhoods are more popular than others, and the rents charged are naturally not the same in all sectors.

Take a good look at which neighborhoods are the most popular, and also adapt the equipment of your apartment to ensure that it can appeal to tenants. For example, if you're targeting students or business travelers, you need a very efficient Internet connection. And if you want to rent to tourists, focus your strategy on proximity to the city's cultural sites and iconic monuments.

At HOME SELECT, we help you make the optimal investment according to your needs. We master both the objectives of our buying customers and the specificities of the rental market. This knowledge of the local real estate market allows us to offer you truly effective support, whatever your desires.

7- Secure the apartment

As you should know, second homes are particularly vulnerable to burglaries. Indeed, nothing is more tempting for a thief than to come and retrieve objects from a house that is unoccupied for a large part of the year, where he can search without fear of the owners arriving! Ideally, it is in your best interest to do what is necessary to avoid break-ins in doors and windows (if they are accessible). With this in mind, nothing prevents you from replacing your door with a more robust alternative, and why not investing in security devices for patio doors. You can rely on A2P certified locks or even protective bars on windows, not to mention shutters, which are a great way to prevent theft.

On roller shutters, you can add an anti-clip lock that prevents thieves from lifting them to enter your home. There are anti-pull tips, but you can also rely on motorized shutters that are both practical and safe, especially when they have an anti-lift option.

Finally, feel free to install an alarm and/or a camera. This makes it possible to alert the neighbours in case of a problem, to notify the police directly following a break-in or to be able to see what is happening in your home at any time, wherever you are.

At HOME SELECT, we don't forget any detail that could impact your quality of life. We also take the time to advise you on the most effective methods to secure your second home, if necessary. We can put you in contact with trusted professionals to change a lock, door or even install security shutters.

Remember that a second home, just like an apartment occupied all year round, can be purchased with the help of a HOME SELECT property hunter. We are fully informed of trends and best practices and we will offer you a tailor-made service to allow you to have a Parisian home that meets all your expectations.